CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARR - US14448C1045 - Common Stock
54.5 USD
-0.12 (-0.22%)
54.0177 USD
-0.48 (-0.88%)
Taking everything into account, CARR scores 4 out of 10 in our fundamental rating. CARR was compared to 41 industry peers in the Building Products industry. CARR has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, CARR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CARR was profitable.
In the past year CARR had a positive cash flow from operations.
In the past 5 years CARR has always been profitable.
In the past 5 years CARR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CARR (10.46%) is better than 70.73% of its industry peers.
The Return On Equity of CARR (27.45%) is better than 82.93% of its industry peers.
CARR's Return On Invested Capital of 5.09% is on the low side compared to the rest of the industry. CARR is outperformed by 70.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CARR is below the industry average of 12.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROIC | 5.09% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
1.3 Margins
CARR has a better Profit Margin (18.05%) than 92.68% of its industry peers.
In the last couple of years the Profit Margin of CARR has grown nicely.
With a Operating Margin value of 11.00%, CARR perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
CARR's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 27.36%, CARR perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
CARR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% |
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CARR is destroying value.
The number of shares outstanding for CARR has been increased compared to 1 year ago.
The number of shares outstanding for CARR has been increased compared to 5 years ago.
The debt/assets ratio for CARR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.45 indicates that CARR is not a great score, but indicates only limited risk for bankruptcy at the moment.
CARR has a worse Altman-Z score (2.45) than 78.05% of its industry peers.
CARR has a debt to FCF ratio of 8.45. This is a slightly negative value and a sign of low solvency as CARR would need 8.45 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.45, CARR is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.78 indicates that CARR is somewhat dependend on debt financing.
CARR has a Debt to Equity ratio of 0.78. This is in the lower half of the industry: CARR underperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.58
WACC8.78%
2.3 Liquidity
CARR has a Current Ratio of 1.14. This is a normal value and indicates that CARR is financially healthy and should not expect problems in meeting its short term obligations.
CARR's Current ratio of 1.14 is on the low side compared to the rest of the industry. CARR is outperformed by 87.80% of its industry peers.
A Quick Ratio of 0.75 indicates that CARR may have some problems paying its short term obligations.
CARR's Quick ratio of 0.75 is on the low side compared to the rest of the industry. CARR is outperformed by 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for CARR have decreased by -0.36% in the last year.
The Earnings Per Share has been growing by 20.27% on average over the past years. This is a very strong growth
CARR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.93%.
The Revenue has been growing slightly by 3.86% on average over the past years.
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
3.2 Future
CARR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.59% yearly.
CARR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.60, CARR is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as CARR.
CARR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
CARR is valuated rather expensively with a Price/Forward Earnings ratio of 17.63.
CARR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CARR to the average of the S&P500 Index (35.40), we can say CARR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 17.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARR is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.53 | ||
| EV/EBITDA | 15.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y5.08%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.66%. Purely for dividend investing, there may be better candidates out there.
CARR's Dividend Yield is rather good when compared to the industry average which is at 1.31. CARR pays more dividend than 85.37% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, CARR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
18.56% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP18.56%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
54.5
-0.12 (-0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-0.71%
Ins Owners6.03%
Ins Owner Change2.9%
Market Cap45.90B
Revenue(TTM)22.06B
Net Income(TTM)3.98B
Analysts76.88
Price Target74.11 (35.98%)
Short Float %1.65%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP18.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.53%
Min EPS beat(2)-0.24%
Max EPS beat(2)15.31%
EPS beat(4)3
Avg EPS beat(4)7.55%
Min EPS beat(4)-0.24%
Max EPS beat(4)15.31%
EPS beat(8)6
Avg EPS beat(8)5.54%
EPS beat(12)9
Avg EPS beat(12)4.93%
EPS beat(16)13
Avg EPS beat(16)6.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-2.9%
Revenue beat(16)4
Avg Revenue beat(16)-2.03%
PT rev (1m)-3.17%
PT rev (3m)-13.24%
EPS NQ rev (1m)-21.32%
EPS NQ rev (3m)-35.67%
EPS NY rev (1m)-1.37%
EPS NY rev (3m)-11.49%
Revenue NQ rev (1m)-3.57%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 17.63 | ||
| P/S | 2.08 | ||
| P/FCF | 32.53 | ||
| P/OCF | 24.3 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.29 |
EPS(TTM)2.78
EY5.1%
EPS(NY)3.09
Fwd EY5.67%
FCF(TTM)1.68
FCFY3.07%
OCF(TTM)2.24
OCFY4.12%
SpS26.19
BVpS17.23
TBVpS-9.18
PEG (NY)N/A
PEG (5Y)0.97
Graham Number32.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROCE | 8% | ||
| ROIC | 5.09% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 23.15% | ||
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% | ||
| FCFM | 6.4% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
ROICexc(3y)10.45%
ROICexc(5y)9.61%
ROICexgc(3y)34.91%
ROICexgc(5y)29.9%
ROCE(3y)12.67%
ROCE(5y)12.04%
ROICexgc growth 3Y11.52%
ROICexgc growth 5Y4.64%
ROICexc growth 3Y-15.42%
ROICexc growth 5Y-8.97%
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 37.85% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.21% | ||
| Profit Quality | 35.43% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.45 |
F-Score5
WACC8.78%
ROIC/WACC0.58
Cap/Depr(3y)74.81%
Cap/Depr(5y)83.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.96%
Profit Quality(3y)66.45%
Profit Quality(5y)76.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
EBIT growth 1Y-5.35%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year27.31%
EBIT Next 3Y12.77%
EBIT Next 5Y8.53%
FCF growth 1Y-38.44%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-29.2%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%
CARRIER GLOBAL CORP / CARR FAQ
Can you provide the ChartMill fundamental rating for CARRIER GLOBAL CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CARR.
What is the valuation status of CARRIER GLOBAL CORP (CARR) stock?
ChartMill assigns a valuation rating of 3 / 10 to CARRIER GLOBAL CORP (CARR). This can be considered as Overvalued.
How profitable is CARRIER GLOBAL CORP (CARR) stock?
CARRIER GLOBAL CORP (CARR) has a profitability rating of 5 / 10.
What is the valuation of CARRIER GLOBAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARRIER GLOBAL CORP (CARR) is 19.6 and the Price/Book (PB) ratio is 3.16.
Can you provide the expected EPS growth for CARR stock?
The Earnings per Share (EPS) of CARRIER GLOBAL CORP (CARR) is expected to decline by -2.27% in the next year.